Tesla Surges 10.3% as Musk-Trump Tensions Cool and Robotaxi Launch Nears

Tesla stock ripped higher this week, gaining 10.3% and bucking a broader market pullback. The $1.5 trillion automaker closed at $405.72 on Friday, comfortably above $400 for the first time in weeks, driven by a one-two punch of political de-escalation and fresh robotaxi hype.

The Musk-Trump Ceasefire

The week's first catalyst was political. Elon Musk had spent recent days publicly attacking President Trump's "Big Beautiful Bill," escalating from policy critiques to personal attacks. The feud threatened to revive the brand damage narrative that has dogged Tesla through much of 2025.

Then Musk blinked. In a post on X, he acknowledged his comments had gone "too far" and effectively walked back the confrontation. The apology removed what analysts saw as a near-term overhang — the risk that a political war could trigger regulatory headwinds or deepen the consumer boycott already denting Tesla's sales.

Austin Robotaxi: This Time Is Different?

Bloomberg reported that Tesla is set to begin autonomous vehicle operations in Austin, Texas. The initial target date of June 12 has slipped to June 22, but investors appear willing to overlook a ten-day delay given the magnitude of what a successful launch would represent.

Skeptics have heard this before. In 2019, Musk told investors Tesla would have "one million robotaxis on the road next year." That deadline came and went without a single autonomous fare. Each missed deadline has eroded credibility.

The Bull Case

A functioning robotaxi service, even at small scale, validates the entire autonomy stack and opens a total addressable market measured in trillions. At $405.72, the stock still trades 19% below its 52-week high of $498.83. Gross margins of 19.07% remain competitive in the EV space.

The Bear Case

Vehicle sales are in steep decline globally. The Austin launch date has already slipped once. The CEO's volatility on social media has become a material risk that no other S&P 500 company carries to this degree. If the robotaxi service amounts to a glorified demo, the gap between Tesla's valuation and fundamentals becomes harder to ignore.

The June 22 Austin launch is the single most important near-term catalyst. A successful start could push the stock back toward $450. Another delay could send it below $370.

Sources: Bloomberg, The Motley Fool, Yahoo Finance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.